CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

Mexico: Slowing growth – BNP Paribas

2019-06-19 20:45

According to Hélène Drouot, analyst at BNP Paribas, prospects for the economic growth in Mexico are deteriorating, owing to slower economic activity in the US, a tight fiscal stance and a persistent weakness in private investment.

Key Quotes

“Real GDP growth for Q1 slowed to 1.2% y/y, from 1.7% y/y in Q4 2018. For the whole year, real GDP growth should reach 1.5% (from 2.0% in 2018) and risks are tilted to the downside.”

“On the one hand, trade tensions with the US (following the US President’s announcement to impose tariffs on Mexican imports) will have a detrimental effect on business sentiment, even if the two countries have so far reached an agreement.”

“On the other hand, both the lack of clarity on the government’s policies and the financial support to the state-owned oil company Pemex (which could heavily damage the fiscal balance over the long-term) are clouding the medium-term outlook. Early June, Fitch downgraded Mexico’s and Pemex’s sovereign ratings, while Moody’s changed the outlook to negative (as well as Pemex and several public companies).”


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

Economic news

    Exchange Rates

    GBPUSD +0.54% 1.38128
    EURUSD +0.73% 1.16861
    XAUUSD +0.42% 1804.17
    XTIUSD -0.22% 81.552
    NAS100 +0.91% 15751.2
    US30 +0.39% 35683.4